Strong fundamentals
Demand is driven by several strong macro trends.
Stability
Land investments provide stable returns in recessionary times.
Inflation hedge
A store of value in inflationary times is historically proven.
Limited downside potential
There is no economic depreciation on land. In case of operational failure there is no going concern issue and therefore few “suncen costs”.
Low correlation to other asset classes
In long terms farmland investments outperformed traditional asset classes.
Under-owned Asset
Farmland is an underinvested asset class as access and execution are difficult.